The Hologic Story

Hologic, Inc. is a leading developer, manufacturer, and supplier of premium diagnostic and medical imaging systems dedicated to serving the healthcare needs of women, and a leading developer of state-of-the-art digital imaging technology for general radiography and mammography applications. Our core business units are focused on osteoporosis assessment, mammography and breast biopsy, direct-to-digital x-ray for general radiography applications, and mini C-arm imaging for orthopedic applications.

We are a company of individuals from varying backgrounds who share a common goal — the desire to extend women's lives through the development of technologically superior diagnostic imaging systems that will facilitate the early detection of breast cancer and osteoporosis. We are proud of the work we do every day to preserve and extend the lives of countless women throughout the world.

Each year, more than one million women are diagnosed with breast cancer, while hundreds of thousands of them fall victim to this dreaded disease. In addition, osteoporosis affects more than 200 million women worldwide. The rising number of osteoporotic fractures and their associated morbidity place an increasingly heavy burden on future healthcare resources, as it is estimated that the annual cost of managing osteoporosis will be more than $15 billion.

Hologic, Inc. has achieved a leading market position in breast cancer and osteoporosis detection in the United States. Our market share in the European, Asian, and South American markets continues to grow.

The fastest growing market opportunity is in the breast cancer detection segment. Our primary objective is to capitalize on this opportunity through current and future generations of our Selenia full-field digital mammography system, while responding to the increasing demand of the digital workflow.

There is nothing more important than for us to remain dedicated to the principle of applying highly sophisticated technology to medical imaging challenges; and we are committed to being an active voice and a corporate role model in promoting women's health initiatives.

Looking Ahead

The number of all-digital hospitals continues to rise, driven by the need to increase productivity, reduce costs, and improve patient care. X-rays and manila file folders, which have characterized healthcare for decades, are being replaced with desktop computers and flat-screen monitors. The healthcare needs of today require diagnostic imaging service providers that can produce the highest quality images, transmit them broadly, display them in alternative ways, and archive and retrieve them efficiently. Hologic, Inc. will play a major role in this revolution, as we continue to focus our resources on new product platforms and innovative technological development, which we expect will drive our business in the future.

Work in Progress

One area that is receiving lots of attention both in Hologic, Inc. and in the world press is our work on breast tomosynthesis. Tomosynthesis should make it possible to obtain three-dimensional images of the breast and to view one slice at a time by removing the images of the overlying and underlying tissue that confuses an ordinary breast x-ray. The greater clarity of the resulting image is expected to lead to the achievement of important clinical benefits, such as increasing the breast cancer detection rate and decreasing the number of false positives that result in unnecessary and emotionally stressful callbacks for additional examinations. In addition, because tomosynthesis reduces the confusion caused by images of overlapping tissue in the breast, it may be possible to significantly reduce the amount of compression now used for mammography.

I would like to thank our customers, our business partners, our employees, and our shareholders for their ongoing support. We look forward to partnering with you to continue to be the technology leader in women's imaging.

Sincerely,

Jack Cumming

Jack W. Cumming

Chairman and Chief Executive Officer